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 It is the summation of two or more 
numbers into one single total. The 
numbers to be added are called 
addends and the number that 
expresses the total is the sum.
Principles of Addition. There are three 
general rules or principles we should keep 
in mind when we add numbers. 
1. When we add two numbers, the order in w/c we 
add them does not affect the sum. Thus, 5+3=3+5. 
This is called the commutative principle of addition. 
This principle enables us to add columns either 
upward or downward. We use it to check addition 
by adding in the opposite direction. 
2. When we have three or more numbers to add, the 
way we group the numbers does not affect the sum. 
This is called the associative principle of addition. 
The commutative and associative principles 
enable us, when adding several numbers, to skip 
around to find combinations that make 10 or some 
other number easier to add. 
3. Adding 0 to a number does not change the number, 
example, 7+0=7. Thus, 0 is called the identity number 
for addition.
Shortcuts in Addition 
Methods 1. When adding integers, group and 
add at sight integers whose sum is 10. 
Example 1. 4+3+6+7+5= 25 
Method 2. When adding more than two numbers of 
two digits each, add the tens numbers first multiplied 
by 10, and add the units numbers in sequence. 
Example 1. Add 43 and 32. 
Solution: Add 40+30=70 
To 70 add 3 and 2=70+3+2=75
The methods used for checking an answer in 
addition are the following: 
•Reverse order adding. Before adding, arrange the 
numbers according to their place values. The 
checking operation is then performed from bottom 
to the top. 
Example 1. Add 6, 253; 2,498; 1,031 and 2,488
› The process of determining the 
difference between two numbers is 
called subtraction. Minus (-) 
indicates subtraction. The number to 
be subtracted is called subtrahend 
and the number from which we 
subtract is called minuend. The result 
is what we call remainder or 
difference.
65 minuend 
-42 subtrahend 
23 difference 
(Check: 23 + 42 = 65) 
In the expression 65 = 42, 65 represents the sum of 
two addends. One of them is 42. The other is the number to 
w/c 42 was added to give 65. That is, X+42 = 65. To do this, 
we have to reverse the operation by subtracting 42 from 
65. The difference, 23, is the other addend. Thus X, (the 
other addend) 65-42 = 23. We see that subtraction is the 
inverse operation of addition , and addition is the inverse of 
subtraction, as shown below. 
Subtraction Addition 
65 minuend 23 addend 
-42 subtrahend +42 addend 
23 difference 65 sum
› Multiplication is the short-cut way to add. If we are 
to add a number several times, simply multiply the 
number by the number of times it is to be added. 
For example, add 12 four times is the same as 12 
multiplied by 4. the symbols used to indicate 
multiplication are “x,” brackets, parentheses, and 
the decimal point (.) which is placed slightly higher 
than our usual fractional decimal point.
For example, 12 times 4 can be expressed as 
follows: 
1. 12x4 = 48 
2. (12) (4) = 48 
3. [12] [4] = 48 
4. 12. 4 = 48
The multiplier indicates how many 
times the multiplicand would be added 
if the product was to be found by 
addition. Thus, in 12x4 = 48, 12 is the 
multiplicand, 4 is the multiplier and 48 is 
the product. The multiplicand and 
multiplier are also called factors of the 
product. 
1.Interchanging multiplicand and 
multiplier 
2.Dividing the product by one of the 
factors
 1. The Commutative Law of 
Multiplication 
 This principles states that changing the 
orders of the factors does not change 
the value of the product. 
 Example 1) 6x4 = 4x6 
 24 = 24 
› Example 2) 6.3.5 = 5.3.6 
90 = 90
 This principle states that factors may be 
grouped together and treated as one 
product without changing the value of 
the final product. Thus, the way we 
group the numbers does not affect the 
product. 
 Example 1) (4.2).3 = 2.(4.3) 
8. 3 = 2. 12 
24 = 24
› This principle states that the multiplier 
must be made to operate upon each 
term of the sum or difference. Thus, this 
law implies that certain variable is to be 
assigned and distributed to each of the 
other variables. 
› Example 1)3. (5+4) = 3.5+3.4 
3. 9 = 15 + 12 
27 = 27
› This principles states that a 
number is not changed when it 
is multiplied by 1. 
› Example 1. 7 x 1 = 7 
› Example 2. 1,ooo x 1 = 1,000
› This principle states that when a 
number is multiplied by 0 , the 
product is always o. 
› Example 1. 8 x 0 = 0 
› Example 2. 1,500 x 0 = 0
› When

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business finance

  • 1.
  • 2.  It is the summation of two or more numbers into one single total. The numbers to be added are called addends and the number that expresses the total is the sum.
  • 3. Principles of Addition. There are three general rules or principles we should keep in mind when we add numbers. 1. When we add two numbers, the order in w/c we add them does not affect the sum. Thus, 5+3=3+5. This is called the commutative principle of addition. This principle enables us to add columns either upward or downward. We use it to check addition by adding in the opposite direction. 2. When we have three or more numbers to add, the way we group the numbers does not affect the sum. This is called the associative principle of addition. The commutative and associative principles enable us, when adding several numbers, to skip around to find combinations that make 10 or some other number easier to add. 3. Adding 0 to a number does not change the number, example, 7+0=7. Thus, 0 is called the identity number for addition.
  • 4. Shortcuts in Addition Methods 1. When adding integers, group and add at sight integers whose sum is 10. Example 1. 4+3+6+7+5= 25 Method 2. When adding more than two numbers of two digits each, add the tens numbers first multiplied by 10, and add the units numbers in sequence. Example 1. Add 43 and 32. Solution: Add 40+30=70 To 70 add 3 and 2=70+3+2=75
  • 5. The methods used for checking an answer in addition are the following: •Reverse order adding. Before adding, arrange the numbers according to their place values. The checking operation is then performed from bottom to the top. Example 1. Add 6, 253; 2,498; 1,031 and 2,488
  • 6. › The process of determining the difference between two numbers is called subtraction. Minus (-) indicates subtraction. The number to be subtracted is called subtrahend and the number from which we subtract is called minuend. The result is what we call remainder or difference.
  • 7. 65 minuend -42 subtrahend 23 difference (Check: 23 + 42 = 65) In the expression 65 = 42, 65 represents the sum of two addends. One of them is 42. The other is the number to w/c 42 was added to give 65. That is, X+42 = 65. To do this, we have to reverse the operation by subtracting 42 from 65. The difference, 23, is the other addend. Thus X, (the other addend) 65-42 = 23. We see that subtraction is the inverse operation of addition , and addition is the inverse of subtraction, as shown below. Subtraction Addition 65 minuend 23 addend -42 subtrahend +42 addend 23 difference 65 sum
  • 8. › Multiplication is the short-cut way to add. If we are to add a number several times, simply multiply the number by the number of times it is to be added. For example, add 12 four times is the same as 12 multiplied by 4. the symbols used to indicate multiplication are “x,” brackets, parentheses, and the decimal point (.) which is placed slightly higher than our usual fractional decimal point.
  • 9. For example, 12 times 4 can be expressed as follows: 1. 12x4 = 48 2. (12) (4) = 48 3. [12] [4] = 48 4. 12. 4 = 48
  • 10. The multiplier indicates how many times the multiplicand would be added if the product was to be found by addition. Thus, in 12x4 = 48, 12 is the multiplicand, 4 is the multiplier and 48 is the product. The multiplicand and multiplier are also called factors of the product. 1.Interchanging multiplicand and multiplier 2.Dividing the product by one of the factors
  • 11.  1. The Commutative Law of Multiplication  This principles states that changing the orders of the factors does not change the value of the product.  Example 1) 6x4 = 4x6  24 = 24 › Example 2) 6.3.5 = 5.3.6 90 = 90
  • 12.  This principle states that factors may be grouped together and treated as one product without changing the value of the final product. Thus, the way we group the numbers does not affect the product.  Example 1) (4.2).3 = 2.(4.3) 8. 3 = 2. 12 24 = 24
  • 13. › This principle states that the multiplier must be made to operate upon each term of the sum or difference. Thus, this law implies that certain variable is to be assigned and distributed to each of the other variables. › Example 1)3. (5+4) = 3.5+3.4 3. 9 = 15 + 12 27 = 27
  • 14. › This principles states that a number is not changed when it is multiplied by 1. › Example 1. 7 x 1 = 7 › Example 2. 1,ooo x 1 = 1,000
  • 15. › This principle states that when a number is multiplied by 0 , the product is always o. › Example 1. 8 x 0 = 0 › Example 2. 1,500 x 0 = 0